Simple Liquidation blog

When a company begins to struggle financially, directors often turn to online advice or seek professional help for liquidation or rescue options. However, not all “insolvency experts” advertising their services are authorised to act legally. The recent case of Davis Acquisitions Ltd, which was shut down for unlicensed insolvency activities, serves as a strong warning for directors across the UK. This case highlights a critical point that every company director should understand: only licensed insolvency practitioners (IPs) are legally allowed to carry out insolvency work in the United Kingdom. Using an unlicensed adviser is not only risky, but it can also lead to serious consequences for both the director and the company. At Simple Liquidation, we regularly hear from directors who have been misled by unregulated firms promising “cheap” or “quick” liquidations. These companies often act as intermediaries or brokers, taking fees and passing cases on to licensed practitioners — or worse, ...

When a company experiences financial distress, directors are often faced with difficult decisions that must be made quickly and carefully. Insolvency is a highly regulated area of UK law, and the consequences of taking the wrong action can be serious, both for the business and for its directors personally. This is why seeking qualified insolvency advice is not only beneficial but essential when facing cashflow issues, mounting debts or creditor pressure. Why qualified insolvency advice matters UK insolvency legislation places strict responsibilities on company directors, especially when a business becomes unable to meet its liabilities. Continuing to trade while insolvent, making preferential payments or disposing of company assets incorrectly can all lead to personal liability or director disqualification. Without qualified advice, many directors unknowingly expose themselves to risk. A licensed Insolvency Practitioner (IP) has the training, experience and legal authority to guide dir...